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Jul 21, 2008:
The Competition Commission approved a deal whereby the shareholders of a property auction company have sold a 31% stake in the business to financial services group Transaction Capital.
The deal, which values the company at R250m, will see the new shareholders actively growing Alliance Group's speciality financial services offerings including the development of a distressed debt and asset fund. The new shareholders will inject cash into Alliance Group to grow new service offerings, fund acquisitions and facilitate an exit of minority shareholders. According to Alliance chief executive, Rael Levitt "what started as an auction company in Cape Town is now an integrated asset services group".
"Markets have changed, especially over the past two quarters as liquidity has become more difficult to obtain, particularly in special situations. Every day you hear terms like credit tightening, foreclosure, valuation uncertainty, market cool-down and financial distress – all of which are affecting the current asset environment."
For more information contact Rael Levitt on 021 443 6000 or send an email.
